California EDD's $4.6M Cellphone Bill Shock

California's Employment Development Department (EDD) incurred $4.6 million in unnecessary expenses by paying for unused cellphones for over four years. A recent state audit revealed that many of the 7,224 devices acquired during the COVID-19 pandemic remained idle, with some never used and others inactive for extended periods.

Auditors found that approximately half of the mobile devices were unused for at least two years, and 99 were never utilized. The department maintained a surplus of phones compared to its call center staff, a gap that widened post-pandemic. This continued payment for dormant devices, despite regular invoices detailing their lack of usage, was flagged as wasteful.

In response to the audit's findings, the EDD has started to cancel service plans for thousands of devices and has implemented a new policy to terminate service for any phone inactive for 90 days, aiming to prevent future wasteful expenditures.